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A few customers make up a huge amount of NVIDIA's revenue, which is a huge risk for long-term profitability.
NVIDIA (NVDA -0.75%) is the hottest name on the stock market and investors are expecting explosive artificial intelligence growth for years to come. But most of that growth has been driven by a small number of companies ordering AI chips. In this video, Travis Hoium shows just how concentrated NVIDIA's customer risk is and why it could end up disappointing investors.
*Stock prices used were end-of-day prices of July 16, 2024. The video was published on July 17, 2024.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
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